Are You a Medical Resident? What Tax Reform Means to You!

Are You a Medical Resident? Here’s What Tax Reform Means to You!


Of course everyone’s personal situation and individual circumstances are different, but in general tax reform will affect us all, including medical residents. Here’s what to expect in a nutshell, good and bad:
1.    Lower Brackets: Tax brackets are now 10%, 12%, and 22%, respectively. The marginal tax rate for most residents will decline by 3%. When things change in 2025 – you won’t be a resident anymore.

2.    Higher Standard Deduction & Repeal of Personal Exemption: The personal exemption was repealed but the standard deduction was almost doubled to $12,000 for single taxpayers, and to $24,000 if you are married. The single resident taxpayers win here.

3.    Increased Child Tax Credit: This tax credit is now $2,000 per child. For married couples this may negate any tax increase as a result of the elimination of the personal exemption.

Changes to state and local taxes, property tax, mortgage interest deductions, estate tax, or the Alternative Minimum Tax are not likely to affect you, as most medical residents will take the $12,000 standard deduction.
 
Medical school graduates make a median $54,600 in their first year of residency, according to the Association of American Medical Colleges, and a full 75% of the graduates in the Class of 2017 held an average $190,694 in total student loan debt. So the student loan interest deduction remains at $2500 a year, and the moving expense deduction has been eliminated, but still most residents should come out ahead. Use your tax savings to pay off loans, start an emergency fund or retirement account.

CONTACT US: Of course this is the IRS we are talking about – exemptions and exceptions are to be expected. Every case scenario is different, but there is plenty you can do today to plan for tomorrow. Your Fuoco Group healthcare professional has the perfect prescription for a financially healthy future. Whether your residency is in Florida, or the greater New York, Long Island, or Westchester areas, call us at 855-534-2727 today.

 

In The News

The New York Real Estate Journal recently featured a "Ones To Watch" Spotlight, focusing on both up and coming professionals as well as industry veterans across all areas of real estate. Congratulations to Lou Fuoco CPA, CEPA, for being included in this prestigious group of “OTW” for 2019!
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Press and Events

Fuoco Group and TFG Related Entities are proud to announce that Managing Partner Lou J. Fuoco, CPA, CEPA, CVB, has received the 2020 Palm Beach Post Community Choice Award for Best Accountant in Palm Beach County. Lou Fuoco and the Fuoco Group won this award in 2019 as well.
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Fuoco Group and TFG Related Entities are proud to announce that Fuoco Group’s Hauppauge Office, was voted #2 overall in the category of “Accounting Firm Less Than 100 Employees” in the 2019 Long Island Business News Reader Rankings. The Firm was also honored to be recognized as a “top three” Best Accounting Firm Finalist.
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